CIMdata PLM Industry Summary Online Archive

17 April 2007

Financial News

MSC.Software Reports Preliminary Revenue Results for the First Quarter Ended March 31, 2007

MSC.Software Corporation announced preliminary revenue results for the first quarter ended March 31, 2007.

For the first quarter ended March 31, 2007, the Company expects to report revenue in the range of $56 to $58 million compared to revenue of $67.4 million in the first quarter last year. Last year's first quarter included $2.5 million of revenue associated with the Company's PLM business which was sold in March 2006 (of the total $2.5 million of PLM revenue, $1.3 million was software and $1.2 million was services revenue), and approximately $6.8 million in software revenue that resulted from restatement adjustments. The restatement adjustments arise from software revenue recognized in the first quarter of last year for transactions that occurred prior to January 2005. Adjusting for PLM and the accounting restatement impact in the first quarter last year, it is estimated that software license revenue increased by approximately 8% in the first quarter 2007, while maintenance revenue increased by approximately 4% and services declined by approximately 40%. Additionally, as previously reported, the company expects to take a restructuring charge in the first quarter of approximately $7.0 million. The company expects to report a GAAP net loss for the first quarter both before and after adjusting for the restructuring charge.

The revenue range and revenue growth rate are estimates and may change pending the Company's management and independent auditor's completion of their normal quarterly closing and review procedures. The Company expects to report first quarter results on May 9, 2007 and file its Form 10-Q for the first quarter on May 10, 2007. The Company will discuss in detail these first quarter results and forward guidance and outlook for 2007 on its Q1 conference call on May 9th.

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